For the first time
since February 2020 since Covid-19 virtually paralyzed the economy when the
country’s exports and imports were in positive zone during December last year
indicating that both trade and economic activity headed towards near normalcy.
India’s exports rose
for the first time since September, increasing 0.1% to 27.2 billion US dollars
in December as shipments of drugs and pharmaceuticals, electronics and Gems
& Jewellery went up.
Early estimates had
suggested that exports were 0.8 per cent lower at 26.9 billion US Dollars.
Latest data released by the commerce department on Friday pegged imports at
42.6 billion US Dollars, 7.6 per cent higher than a year ago, which was in line
with previous estimate.
Trade and economic activity seem to be headed towards pre-Covid levels
Due to the revision,
it will be the first time since February when exports and imports both are in
positive zone, indicating that trade and economic activity seem to be headed
towards pre-Covid levels. The change also means that trade deficit was
estimated at 15.4 billion US dollars, the highest since January, when it was
15.2 billion US Dollars.
Some analysts are
drawing comfort from the pick-up in imports, which they see as strong
confirmation of economic revival, while others attributed it to pent-up demand.
Barring crude, petroleum products, coal, silver, and transport equipment
imports, most major segments reported an increase, according to government
estimates. In case of petroleum products, the lower value was on account of a
fall in prices in the international market compared to a year ago.